Bioscrypt Reports $6M 'Bought Deal' Financing

Evergreen Capital Partners leads financing

October 5, 2007

2 Min Read
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TORONTO -- Bioscrypt Inc. (TSX: BYT), a leading provider of identity and access management solutions, is pleased to announce today that it has entered into a "bought deal" financing agreement and agreed to issue a total of 12,000,000 units at a purchase price of $0.50 per unit. Bioscrypt plans to use the proceeds of the offering for general working capital and other corporate purposes.

Each unit will be comprised of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant will be exercisable to acquire one common share at a price of $0.60 per share for a period of 24 months from closing. The Company has the right, beginning on the date that is 180 days following the closing of the offering, to require the holders to exercise the warrants should the 20 day volume weighted average price of its common shares equal or exceed $0.80 per share.

The financing is being led by Evergreen Capital Partners Inc. ("Evergreen") and is subject to certain conditions, including a market out, disaster out and a material change out provision. Bioscrypt has provided Evergreen with an over-allotment option to increase the issue size by up to 15% for a period of 30 days from closing. The exercise of this over-allotment option in full is subject to regulatory approval and would result in total gross proceeds of approximately $6,900,000. The units will be offered by way of a short form prospectus in the provinces of British Columbia, Alberta and Ontario.

"With the expanded functionality of VeriSoft, the recent addition of 3D Face and the latest extensions to our line of fingerprint solutions, Bioscrypt has taken significant strides to broaden our identity and access management offerings," said Robert M. Douglas, President and CEO of Bioscrypt. "The successful execution in bringing these solutions to market provides the Company the opportunity to tailor our product suite to our target vertical industries including, financial services, airports, seaports, government, healthcare and the broader enterprise market. The additional capital provides the Company a stronger balance sheet to support our efforts to pursue these business objectives."

Bioscrypt Inc.

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